Yields are starting to jump all over the place and are clearing key resistance levels in many different types of bonds!  Below the Yield on the 10-year note looks to have made an inverse “Head & Shoulders” pattern!


This pattern is very “bullish per yields” moving higher at (2) & (3)!  The breakdown in Muni bonds (see post here) increases the odds that this pattern will influence bond prices for a while longer.

Back in 2007/08 when bond prices in Muni’s (VKQ), Investment Grade (LQD), High Yield (JNK) starting breaking down, just happened to be the early signs that equities had challenging times ahead.  Different this time around?  Keep a close eye on all the bonds and the Dollar too! 

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past